Key facts
- Banks are enhancing algorithmic trading for non-deliverable forwards (NDFs).
- Electronic matching and internalisation techniques are being applied to NDFs.
- Demand for electronic execution in NDFs is growing from hedge funds and asset managers.
Banks are stepping up their algorithmic execution capabilities for non-deliverable forwards (NDFs), applying many of the electronic matching and internalisation techniques used for spot algos. This innovation is aimed at improving execution quality and increasing internalisation for restricted market currencies. The growth in algo volumes for NDF trading has been significant, with some banks reporting high double-digit increases, driven by demand from hedge funds and asset managers seeking electronic execution.
